Early Bird migration from Neo Legacy to Neo N3 resuming August 18

Under the new approach, users will send Neo Legacy NEO and GAS to a “blackhole address” on the Legacy network and attach an Neo N3 address to the transaction. The NF will then scan the blackhole address and distribute the corresponding amount of NEO and GAS to the Neo N3 address supplied by the user. The NF will only use the Neo Legacy blackhole address for the migration to Neo N3. Users must not send funds manually to this address, or they risk losing their assets. Migration should only be performed through an approved channel.

The NF notes there are two types of network fees applicable during the migration.

First, fees of up to 1 GAS may be incurred when transferring less than 10 NEO or 20 GAS. This is to prevent malicious users from disproportionately wasting GAS on Neo N3 with lots of small migration transactions.

Second, additional network fees may apply to a single transaction with more than 15 UTXO inputs. A UTXO is an amount of cryptocurrency that remains on an address after a transaction is executed. UTXOs are continually processed and stored on a blockchain as inputs for future transactions, requiring additional storage and computational resources.

The NF says the migration process should take approximately 30 minutes for most users but could take up to 24 hours to complete. The migration team also noted that users must have updated web wallets (O3 v3.8.2 or NeoLine v3.4.2) for the new migration approach.

At the time of press, no other Neo ecosystem wallets offer support for the migration.

Poly Network attack and its impact on Neo

On Aug. 10, the NF paused the migration of tokens from Neo Legacy to Neo N3 following an attack on the Poly Network cross-chain protocol that led to the theft of over US $600m in assets. Poly Network is the cross-chain bridge that previously facilitated the migration of tokens from Neo Legacy to Neo N3.

There were no Neo-based assets compromised in the attack.

The full announcement can be found at the link below: https://medium.com/neo-smart-economy/neo-n3-migration-update-early-bird-migration-resumes-e081f687c9a9